Ethical Issues at Union Carbide

This report discusses the ethical issues at Union Carbide and the Bhopal gas tragedy. It explores the meaning of ethics, ethical issues in business, and the ethical analysis of the disaster. The responsibility of the local government is also examined. The report emphasizes the importance of ethics in business and the need for proper implementation of laws. Relevant books and journals on the topic are provided as references.

Ethical Issues at Union
Carbide

Table of Contents
INTRODUCTION...........................................................................................................................1
Main Body.......................................................................................................................................1
Conclusion.......................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
In lay man language ethics means discipline, a moral philosophy that an individual may
have in their behaviour. Ethics in individual guides their path either right or direction. Ethics also
guides the behaviour of the person to be good or bad. However the decisions of good or bad,
right or wrong in ethical way is lay in the hands of the person and how he/ she use this. The term
ethics become much more broader when it linked with any organisational level (Lefkowitz,
2017). As the organisation not work with any individual philosophy instead, this consist bunch of
people and their life are depending upon them. The ethics of the organisation guides the pathway
of the company such as, what to work, what values to be peruse, what objectives needed to be
achieved and much more. The overall functioning of the organisation largely depend upon the
ethical behaviour of the leaders towards company and its employees (Sroka and Szántó, 2018).
Current report is based on ethical issue, when an organisation lack in the ethics and how
it leads to disaster. The disaster was so serious that it consider as one of the major industrial
disaster even today. Union Carbide, an US company set up its factory in Bhopal, India. The
factory was made to produce Sevin (a pesticide) using methyl isocyanate. The factory set up in
1969 and the event of leak in methyl isocyanate in factory of UICL took place in the year of
1984 under the Chairmanship and CEO of the company Warren Anderson.
Main Body
According to Business Standard report, on the night of December 2, 1984, chemical,
methyl isocyanate (MIC) spilt out from Union Carbide India Ltd’s (UCIL’s), parent company
UCC in US, a pesticide factory turned the city of Bhopal into a colossal gas chamber. Methyl
isocyanate gas leak killed more than 15,000 people and affected over 600,000 workers. The
stillbirth rate and the newborn mortality rate increased by up to 300% and 200% respectively.
The gas leak impacted on natural environment as well such as trees, firms and animals too.
Understanding what is Ethical Issues in Business.
After understanding the meaning of ethics now next turn, to know what actually mean to
ethical issues. Ethical issues in business include wide area of the organisation. There are some
fundamental ethical issues businesses face such as, way of conducting of business, trust among
the workers, more complex situation like diversity, legal issues, poor decision making, corporate
governance etc. According to Global Business Ethics survey in 2018, have reveal that around
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25% employees around the world feel that their senior authority in company do not posses
adequate understanding the role of ethics and compliances.
Ethical Analysis of the Disaster.
In upcoming section try to clarify the responsibility of the such disastrous tragedy took
place in Bhopal. Particularly, focus is given to the lack of ethical values which become ultimate
result of the disaster. From above information it is assume that negligence have taken place in
the factory. The case of Bhopal pin point the violation of ethical principles in the organisation.
To understand these principles of ethics are discussed in following section:
Be Concern for Others: The organisation's leaders with caring, compassionate and kind nature;
such in the Golden Rule which state that help those in need and seek to accomplish business
goals in a way that it can cause the least harm to anyone and earn greatest positivity (Jamnik,
2017). The company lack in concern while the disastrous event took place in India. As the UCC
according to NCBI report mentioned that the company involvement became the worst industrial
accident in history and immediately tried to cut off itself from any legal responsibility.
Respect for Laws: It is imperative for organisations to be a law abided body when it corporate
at higher level. Declaration of human right, environment laws for factory which involve with
chemical components, health laws for workers and the for the surrounded environment etc. are
some laws that country's government impose for safe practices of businesses and satisfy
environment for other of that region as well. The company had under estimated the laws as
discovered during the investigation. The report reveal many facts where laws for the factory have
seem to be not abide. The company UCC have admitted in their own investigation report (UCC
1985) such as:
 Tank temperatures were not logged
 The vent gas scrubber (VGS) was not in use
 The cooling system was not in use
 The concentration of chloroform in the production tank was too high
 The tank was not pressurized
 Iron was present because of corrosion
 The tank’s high-temperature alarm was not functioning
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Accountability for any Happenings: It is important for organisation to acknowledge, assume
responsibility and acceptance of personal accountability for the ethical quality while conducting
business. Since the denial of Union Carbide company's top authority for any kind of
misshapenness put the CEO in questionable position (Kala, 2017).
On ethical parameter analysed that company UCC is wholly responsible for the accident
that happen at Bhopal, India. The company found duly held responsible in negligence of safety,
security in the factory for workers as well as for the area where it was operating. Victims who
survive the disaster called company a monster who not consider the life of the humans involve
with this factory. Moreover in the ultimate report after several investigation found that the
behaviour of the company was unethical.
Responsibility of the Local Government
The negligence of the government also found during investigations. As the government
fail to take any immediate action against the gas leakage. The government indulge itself in low
level politics and raise the casteism in the whole situation. A strong legal system is needed which
can state equal democratic rights for the citizens, transparent resolutions for all and strict actions
against any kind of corruption. It become a noticeable as the case become global concern and
remain a worst history of gas leakage, which impact thousands of life and the aftermath have still
making impact in the life of people in Bhopal.
Conclusion
It assumed from above reporting that understanding of ethics and its principles are so
important that without valuing ethics can lead to catastrophic result. In terms of organisational
level it have much broader concept. Since a business organisation are part of the society and it
significant for company to abide all laws, respect the environment where they operate, the people
who are involve with them and many things that are undeniable part of an organisation. In
Bhopal tragedy it found that company's ethical issues not only taken life of thousands but the
aftermath have still making hazardous impact in the life of upcoming generations and in
environment at whole. Compensations from company or Government can not bring back what
people have lost in such horrible disaster. Therefore it is important for company and government
to ensure proper implementations of laws related with business. The ethical analysis not only
concern for individual only but also equal responsibility of the government authority as well. of
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have Eventually it reached a settlement with the Indian Government through mediation of that
country's Supreme Court and accepted moral responsibility.
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REFERENCES
Books and Journals
Lefkowitz, J., 2017. Ethics and values in industrial-organizational psychology. Taylor &
Francis.
Sroka, W. and Szántó, R., 2018. Corporate social responsibility and business ethics in
controversial sectors: Analysis of research results. Journal of Entrepreneurship,
Management and Innovation, 14(3). pp. 111-126.
Kala, C., 2017. Pain and Chronic Disease in the aftermath of an Environmental
Disaster. International Journal of Research in Social Sciences. 7(7). pp. 464-470.
Jamnik, A., 2017. The challenges of business ethics: The basic principles of business ethics-
ethical codex in business. Review of Innovation and Competitiveness: A Journal of
Economic and Social Research, 3(3). pp. 85-100.
Online
Global Business Ethics Survey™, 2018. [Online]. Available
through:<https://www.ethics.org/knowledge-center/2018-gbes-2/>
Bhopal Gas Tragedy, 2021. [Online]. Available
through:<https://www.business-standard.com/about/what-is-bhopal-gas-tragedy>.
Union Carbide Corporation, 2001- 2020. [Online]. Available through:<
http://www.bhopal.com/bhopal-tragedy-cause.html>
The Bhopal disaster and its aftermath: a review, 2005. [Online] Available through:<
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC1142333/>
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